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Joe's taxable income is [tex]$\$[/tex] 67,825[tex]$. Use this tax schedule to calculate the total amount he owes in taxes.

\begin{tabular}{|c|c|c|}
\hline If taxable income is over- & But not over- & The tax is: \\
\hline$[/tex]\[tex]$ 0$[/tex] & [tex]$\$[/tex] 7,825[tex]$ & 10 percent of the amount over $[/tex]\[tex]$ 0$[/tex] \\
\hline[tex]$\$[/tex] 7,825[tex]$ & $[/tex]\[tex]$ 31,850$[/tex] & [tex]$\$[/tex] 782.50[tex]$ plus 15 percent of the amount over $[/tex]\[tex]$ 7,825$[/tex] \\
\hline[tex]$\$[/tex] 31,850[tex]$ & $[/tex]\[tex]$ 77,100$[/tex] & [tex]$\$[/tex] 4,386.25[tex]$ plus 25 percent of the amount over $[/tex]\[tex]$ 31,850$[/tex] \\
\hline[tex]$\$[/tex] 77,100[tex]$ & $[/tex]\[tex]$ 160,850$[/tex] & [tex]$\$[/tex] 15,698.75[tex]$ plus 28 percent of the amount over $[/tex]\[tex]$ 77,100$[/tex] \\
\hline[tex]$\$[/tex] 160,850[tex]$ & $[/tex]\[tex]$ 349,700$[/tex] & [tex]$\$[/tex] 39,148.75[tex]$ plus 33 percent of the amount over $[/tex]\[tex]$ 160,850$[/tex] \\
\hline[tex]$\$[/tex] 349,700[tex]$ & no limit & $[/tex]\[tex]$ 101,469.25$[/tex] plus 35 percent of the amount over [tex]$\$[/tex] 349,700[tex]$ \\
\hline
\end{tabular}

A. $[/tex]\[tex]$ 12,348.80$[/tex]
B. [tex]$\$[/tex] 4,386.25[tex]$
C. $[/tex]\[tex]$ 13,380.00$[/tex]
D. [tex]$\$[/tex] 8,993.75$



Answer :

GinnyAnswer
To determine the total amount Joe owes in taxes based on his taxable income of \[tex]$67,825, we will use the given tax schedule. Let's break down Joe's taxable income as it applies to the tax brackets: 1. The first \$[/tex]7,825 is taxed at 10%.
- [tex]\(\text{Tax for this bracket} = \$7,825 \times 0.10 = \$782.50\)[/tex]

2. The next amount from \[tex]$7,825 to \$[/tex]31,850 is taxed at 15%.
- The taxable amount in this bracket is [tex]\(\$31,850 - \$7,825 = \$24,025\)[/tex]
- [tex]\(\text{Tax for this bracket} = \$24,025 \times 0.15 = \$3,603.75\)[/tex]

3. The remaining amount from \[tex]$31,850 to \$[/tex]67,825 falls into the third bracket.
- The taxable amount in this bracket is [tex]\(\$67,825 - \$31,850 = \$35,975\)[/tex]
- [tex]\(\text{Tax for this bracket} = \$35,975 \times 0.25 = \$8,993.75\)[/tex]

We now sum up the taxes from all brackets to find the total tax Joe owes:
[tex]\[ \text{Total Tax} = \$782.50 + \$3,603.75 + \$8,993.75 \][/tex]
[tex]\[ \text{Total Tax} = \$13,380.00 \][/tex]

Thus, the total amount Joe owes in taxes is [tex]\(\$13,380.00\)[/tex].

The correct answer is:
C. \$13,380.00

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